Thailand is a relatively large Southeast Asian economy with a large expat community. In addition, the country actively maintains economic relations with the US, China, and other countries in the region. All this makes the country attractive for crypto-business. Finally, a detailed crypto regulation framework is modeled after Korea and Japan. Unfortunately, it has been tightening recently.
Country overview
#26
ThailandCountry stats
Rating Points
292
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
13%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
21
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
9 308 000
Total amount of crypto users out of the country's total population based on public data.
Taxation points
24
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
168.4
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Ban
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Considerable danger
The overall level of security in a given country based on open data.
Crypto Salaries
Ban
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Bad
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Good
Medium
Bad
Thailand has a Considerable danger security level according to our rating. Jurisdiction has 61.7 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 4.8 per 100,000 inhabitants a year.
Cryptocurrencies are legal for trade and investment but banned (3) for payments.
Since crypto payments are banned, crypto salaries are illegal in the country, too.
| Type of license | License |
| #cryptotocrypto | Digital Asset Business: Digital Asset Exchange |
| #cryptotofiat | Digital Asset Business: Digital Asset Exchange |
| #wallet | Digital Asset Business: Digital Asset Custodial Wallet Provider |
| #cryptofund | Digital Asset Business: Digital Asset Fund Manager |
| #tokenissuance | Offering of digital tokens |
| #custodian | Digital Asset Business: Digital Asset Broker |
| #custodian | Digital Asset Business: Digital Asset Dealer |
The Thai SEC is(3¹) the country's crypto regulator. In 2018, the SEC passed the Emergency Decree on Digital Asset Businesses, which laid out the licensing, disclosure, and legal requirements for issuing, distributing, or carrying out service provisions using cryptocurrencies.
Crypto regulation framework is based on that decree, and in simple form, it can represented in the image below:
If you want to know more about cryptocurrency regulation in Thailand, you can read it here - EMERGENCY DECREE ON DIGITAL ASSET BUSINESSES (4).
On Jan. 17, the Thai SEC issued (5) regulations requiring virtual asset service providers (VASP) to establish a digital wallet management system to guarantee efficient custody. The new rules target crypto custodians or VASPs that provide crypto storage services.
More cases need to be evident, but the legislation allows token issuance.
In 2017, the Thai authorities introduced (6) new progressive legislative standards that increased the transparency and control of cryptocurrency turnover. Exchanges, exchangers, and other sellers of non-fiat funds must pass a registration with the regulator - the Securities and Exchange Commission (the SEC). It issues a license for the cryptocurrency exchange control to implement the rules, including the payment of taxes.
Based on Freeman Law overview (7), cryptocurrencies are not considered legal tender in Thailand. Instead, cryptocurrencies and other digital tokens are deemed “digital assets” by the Royal Decree on Digital Asset Business, which took effect on May 14, 2018.
The Thailand Securities and Exchange Commission (SEC) has approved (8) licensed 21 Virtual Assets Service Providers (VASPs) in the country.
According to a report (9) by Thai Inquirer, the four newly approved firms include Krungthai XSpring (KTX) (a broker), T-BOX (an exchange), Coindee (an advisor and fund manager), and Leif Capital Asset Management (a fund manager).
The report noted that despite the licenses, the SEC must inspect the firms’ operations before they can start market activities. According to the regulator, more firms are awaiting approval, including Binance(9¹), which intends to launch “Gulf Binance” in collaboration with local firm Gulf Innova.
Thai SEC has also published (10) new rules for crypto funds this year. According to them, crypto funds will be regulated by the same procedure as VASP.
| Tax name | Index |
| PIT tax Min | 5 |
| PIT tax Max | 35 |
| Corporate tax (CIT) | 20 |
| Min Individual CGT (for crypto) | 15 |
| Max Individual CGT (for crypto) | 15 |
| Wealth tax Min | 0 |
| Wealth tax Max | 0 |
PIT
0% - 35% in obedience to PWC(11).
CIT
The corporate income tax (CIT) rate is 20% based on PWC(12).
CGT
Capital gains on the sale of investments derived from or in Thailand by a foreign company not carrying on business in Thailand are subject to a tax of 15%, based on PWC (13).
Wealth Tax
Share of profits or any benefits from holding or possessing digital tokens or gains from transferring cryptocurrencies or digital tokens are subject (14) to a WHT at the flat rate of 15%.
1)Crime Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
3)Lexology.Thai SEC Bans Cryptocurrency as a Means of Payment
3¹) EMERGENCY DECREE ON DIGITAL ASSET BUSINESSES B.E. 2561 (2018)
4)EMERGENCY DECREE ONDIGITAL ASSET BUSINESSES
6)Thailand Cryptocurrency Exchange License. Private Finance.
7)Thailand and Cryptocurrency. Freeman Law.
8)Thai SEC grants operating licenses to 4 more digital assets firms. Coingeek.
9¹)Binance